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The opportunities and challenges Singapore’s agritech sector faces

Food sustainability has long been a hot-button topic for Singapore, and there has been a greater push for Singapore to inch toward self-sustainability.

As a Farm Manager in Archisen, a local urban agritech farm, we’ve seen the changes in Singapore’s agriculture landscape firsthand. We’ve had to experiment with many new ideas and concepts, build teams, optimise yield productivity, and implement new innovations – all to keep up with the increasing importance of food security in Singapore.

The current agricultural landscape

Agriculture has been a crucible of evolutionary change over the years. Despite being ranked the most food-secure country in the world, The Singapore Food Agency reports that the country imports over 90 per cent of its domestic food consumption.

Also Read: Can agritech solve the world’s growing food security problem?

As a result, this leaves the bulk of our food supply dependent on unpredictable factors such as climate change, political unrest or economic shifts.

In the current agriculture landscape in Singapore, I feel that urban farms have their own set of unique challenges, and we do have a fair share of implications from these price hikes, such as rising costs of raw materials and energy.

The confluence of technology, engineering, design, and farming has set the stage for a transformation in urban farming. Amidst growing realisation that food security is an existential issue to contend with, SFA unveiled their ‘30 by 30 vision’ in early 2020, which aims to locally produce 30 per cent of the country’s nutritional needs by 2030.

Leading the Farm Operations at Archisen, it is my responsibility to ensure that Archisen is actively developing new technologies and solutions to optimise how Urban Farms are operating and to change people’s perceptions towards them.

The Singapore government has enhanced the Agriculture Productivity Fund and pushed out the 30×30 Express Grant to support producers looking to use technology to grow more with less. These recently introduced policies reflect the government’s interest in moving Singapore towards becoming a more self-reliant and food-secure society.

With support from the government, Archisen is playing its part in spearheading the Singapore Green Plan 2030 along with all other local farms.

Despite the government’s efforts to move towards self-sustenance, the lack of popular demand for local products presents a pressing issue today. Without sufficient consumers ‘buying local’, there could be a surplus in production and, subsequently, more food wastage.

Consumers do not tend to actively source locally produced food, especially if it is not certified as ‘locally grown’ or ‘organic’ and placed at eye level on supermarket shelves. Local producers not knowing the right kinds of vegetables consumed by the bulk of the people might also be a contributing factor to the issue of low demand.

Apart from that, one major problem we face in this industry is the lack of manpower. This industry requires a passion for farming which often demands a lot of hard work, and this sometimes demotivates potential applicants.

Also Read: From working on a family farm to driving growth for the world’s fastest growing foodtech company

On the whole, it is technically difficult to grow popular local varieties at competitive rates, and many farms may choose to specialise in less popular leafy greens. Hence, it is crucial that we balance local vegetable supply with an array of different options which can help to reduce waste.

What the future of Singapore’s agricultural landscape looks like

There are still areas that we do not know well enough in the field. In many situations, ready solutions are unavailable, and we must attempt to innovate to solve our problems. However, this also provides many opportunities for development and collaboration.

In 2021, a US$60 million Agricultural Food Transformation Fund was announced, aimed at increasing production efficiency, boosting yield, enhancing productivity and sustainability, and improving circularity of resource use while reducing the reliance on manpower. Such initiatives could help propel the industry towards integrated growth systems, automation and robotics to solve some of their growing problems.

I can envision the continuous development of CEA to efficiently produce more crops that are difficult to flourish in harsh external environments and provide more varieties and cheaper prices for consumers in Singapore.

Apart from greater varieties, There would also be 10 to 15 times more vegetables and fish produced, growing up to half a million kilograms of fresh vegetables each year, mitigating the problem of food insecurity.

To date, there are 238 local urban farms selling produce in supermarkets around Singapore. And this number will grow in the years to come. With a growing supply, an exponential increase in demand for local produce should be expected.

Fortunately, with Singaporeans becoming more environmentally conscious, this shift in mindset will hopefully spur Singaporeans to put sustainability needs over their money-mindedness and support local agriculture.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

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Ecosystem Roundup: Layoffs at Ruangguru, GoTo’s Q3 revenues triple, Better Bite forms new idea-stage alt-protein fund

Ruangguru Co-Founder Iman Usman (C)

Ruangguru Co-Founder Iman Usman (C)

Ruangguru lays off hundreds of employees
The company cites the drastically worsening global market situation for the job cuts; Ruangguru has raised a total of US$205M in funding to date; In July, it acquired education startups Schoters and Kalananti.

Startups in HK and Singapore sidestep local bourses for US SPACs
Info from financial data provider Refinitiv shows that at least nine SG and HK firm this year have announced plans to go public with SPACs listed in the US, despite the cities offering many shell companies since Q1.

GoTo’s Q3 losses drop a tad, revenues triple on cost-cutting efforts
The losses in the quarter came in lower at US$432M compared with US$483M in Q3 2021; The firm reported US$286M in net revenue in the July-Sept quarter, a significant rise from US$91.5M last year.

Binance was soliciting SG users without license, MAS says
In a letter, the MAS said that while both crypto exchanges were not licensed to operate in Singapore, only Binance had been soliciting users in the city-state; Binance also supported listings in SGD and payment methods specific to the city-state.

PropertyGuru’s Q3 revenue soars 47%, net loss narrows
Net revenue rose to US$25M for the quarter on the back of strong marketplace revenues, especially in Singapore and Malaysia; The net loss dropped to US$5.4M in the quarter from US$7M in the same period last year.

Recession Run: Australia’s Mandalay Venture to invest 20% of new fund in SEA
Partner Philippe Ceulen says the VC firm is raising a US$25M fund, meant for startups in the agritech and food technology space; The check sizes are likely to be between US$100K and US$804K.

Lightspeed eyes investments in climate tech startups in SEA, India
Electric mobility is one of the biggest areas to invest in; SaaS-based carbon accounting and offsetting solutions is the other areas of interest; Both SEA and India are poised for innovation in the EV and other climate tech space.

Better Bite rolls out new fund for idea-stage alt-protein firms
‘First Bite’ will select “several new alt protein founders in APAC” and invest US$50K into each; Founders working on new ideas in plant-based, fermentation, molecular farming, and cultivated meat spaces qualify for funding.

Indonesia’s Hangry posts 2.5x revenue jump in 2022
According to the culinary startup’s filing with ACRA, it generated US$12.2M in revenue in 2021; With that figure, its total revenue for the first 10 months of 2022 would be around US$30M.

Ayurveda tech startup NirogStreet raises US$12M to strengthen supply chain
The investors include Jungle Ventures, Spiral Ventures, and ICMG Co-Creation Fund; NirogStreet offers integrated doctor-led prescription e-commerce enablement, P2P learning for Ayurvedic doctors, and health record management.

Singapore’s wealth-tech firm Kristal.AI banks US$10M
The investors include Chiratae Ventures, Stride Ventures, and the Desai Family Office; The company has 50K+ individuals across over 20 countries on its platform, handling upwards of US$1B in AUM.

Sorabel, Magpie founders join Monk’s Hill as venture partners
Lingga Madu and Huong Tran will be in charge of sourcing and executing deals in Indonesia and Vietnam, respectively, and working closely with the VC firm’s portfolio companies.

FTX crypto exchange owes biggest creditors US$3.1B
The embattled firm, which filed for bankruptcy in the US last week, says it owes about US$1.45B to its top 10 creditors; Filings revealed more than 1M people and businesses could be owed money following its collapse.

World’s largest crypto fund swept into FTX storm
The shares of the theUS$10.5B Grayscale Bitcoin Trust, which owns 3.5% of the world’s bitcoin, has plummeted to a 39% discount to the value of its underlying assets as investors have embarked on an increasingly desperately scramble to exit.

HK’s Genesis Block to shut down following FTX crash
Genesis Block operates a portal that lets users trade cryptocurrencies by opening up an account and getting support from an account manager; December 10 will be the last day of the OTC platform.

Korea, SG, Japan suffered most from FTX’s collapse: study
SimilarWeb data from Jan-Oct 2022 shows that Korea had the highest traffic share of 6.1%, representing 297,229 monthly users; Singapore made up 5% of global traffic with 241,675 monthly users.

Will digital banks take off in the Philippines?
Millions in the Philippines live in remote areas with no access to a branch and, therefore, no way to open a traditional account, presenting a huge pool of untapped opportunities for digital banks to expand into.

Why defining work-life harmony is key to navigating uncertain waters in 2023
Our ways of working have changed forever over the last two and a half years, and it’s important to maintain a work-life harmony for success.

Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

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Saison Capital, Mixpanel team up to launch a product manager peer-support community

The Saison Capital team

Early stage venture capital firm Saison Capital today announced that it has teamed up with global data analytics platform Mixpanel to introduce a practitioner-led programme for product managers in Southeast Asia.

The first cohort of the analytics programme in January 2023 will connect Saison Capital’s 2to3 Product Manager Community directly with Mixpanel leaders across product management and engineering. This will allow the PMs to tap into specific and actionable insights during group learning sessions.

In this programme, the Mixpanel team will study insights from more than 7,000 tech companies and answers more than 70 million product questions every month, with some of these insights to be shared with the programme’s cohort.

In an email to e27, Looi Qin En, Principal at Saison Capital, explains the programme and its long-term benefits in further detail.

Also Read: Singapore faces talent crunch for engineering and product manager roles: Report

“During the programme, participants will have a direct touch point at Mixpanel who will partner with them as they make sense of how to implement the knowledge and skills they’ve picked up. Once they’ve completed the programme, they’ll have further support from the 2to3 Community for peer-level learning and networking,” he wrote.

“Ultimately, we launched this with Mixpanel in response to a gap we noticed in the tech ecosystem – a need for a PM community to support the role they play in driving the delivery of solutions in the market. Doing so benefits the industry at large by ensuring we’re lifting the talent level out there.”

The programme is ideal for PMs with at least one year of experience.

“That way, participants can bring their industry perspectives on product building, management and challenges to the table to make for a more engaging way to brainstorm and troubleshoot with fellow PMs,” said Looi.

The 2to3 Product Manager Community, which will be involved in this programme, is a ground-up initiative organised by Saison Capital to invite product managers working in both Web2 and Web3 roles who are curious about the impact
blockchain, crypto, and decentralisation could have on future products and solutions.

Also Read: Lockdown learnings: How I became a half-decent product manager in 2020

Saison Capital said that the community had grown organically to more than 300 PMs within the first month of its launch.

“The 2to3 Community is a ready pool of almost 400 PMs growing based on word-of-mouth referrals. These are all executives who came together because of an organic interest in peer-level learning, so developing this fresh programme was very much in response to the positive feedback from our past 1-on-1 matching sessions and breakfasts,” said Looi.

Fresh intakes of product managers are constantly invited to join the community.

Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

Image Credit: Saison Capital

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12 years as a VC: Life’s valuable lessons turned values

I have been a VC for over 12 years, and while it’s not too long a tenure, it also isn’t a short one.

But if you can change your mind in a few minutes, imagine how much you can change in a decade. During this time, I have definitely grown in my experience, thoughts and approaches.

The journey hasn’t been a linear one, but I thought maybe this is a good time where I reflect and share my learnings for the benefit of others.

Many of these values (and lessons) that I have learned may not be new to you, but as values go, they are unique to everyone, and everyone applies them differently. But I do hope it provides you with a different perspective through my lens.

(Re)building trust

If building a business is tough, the next hardest thing to build is trust, especially one that has been broken before.

Also Read: 5 lessons from 5 years in venture capital

Building trust is a long-term game, and speaking in investment terms, it starts from the early stage, and you need to keep investing time and effort to make sure it gets stronger. For trust to get to the stage of being unconditional and truly mutually cherished is akin to getting to the unicorn stage- not easily done and not as common.

Trust is the most important currency we speak of in the VC world (or at least within AJWC). The value it brings is almost immeasurable. When we have mutual trust between us and our stakeholders (investors, founders, and also especially between partners), conversations become more honest and impactful, deals close quicker, and we are seen as a partner of success rather than just as an investor.

For me, I have also learned that trust needs to be equally strong between co-workers and co-partners. Having my trust broken once before in a business partnership, I became more resolved that in my new partnerships and ventures, it is vital for me to work with people who are not only trustworthy but also value it as much as I do.

Lastly, trust in yourself is often forgotten too. You will learn that there will always be naysayers or detractors who will try to bring you down. But you need to trust in your own abilities, actions, and conscience to rise above all the negativity.

We talk about trust between people, but trust is also about believing in yourself to be able to achieve your goals and be the best version of yourself.

Integrity

So how do you command trust? What kind of person do you trust? To me, it would be someone with a strong sense of integrity.

Having worked in the corporate world (in Credit Suisse and Citibank) for over 10 years, the importance of possessing strong integrity (in myself and the people I work with) played an inherently critical role in further shaping my professional career and how I approach my relationships with my co-workers and clients.

Having worked with different people and faced different challenges and opportunities, I also got to witness (and learned the hard way) how a person’s sense of integrity can be tested in different situations and sometimes that integrity is compromised over short-term gains, thus ruining relationships that took years to build.

I value a friend, a partner, and a colleague who has an unwavering sense of integrity. That is the number one quality I look for in a founder too, because that is the kind of founder that commands respect from his team and who will do the right thing for his team and company.

Being authentic

Trust and integrity then bring about authenticity in the way you present yourself, run the company, and work with founders and investors.

When we were raising fund 1, the best thing we had was our trust in our network. We hustled and went out hunting and farming investors, and it took us over a year to close our first fund. A lot of hard work and time was put in to raise that first round.

What we told ourselves was that there is no shortcut to this, and whatever it is, we have to be authentic and be real about what we can do and achieve and not overpromise to get investments.

I believe that being authentic helped us gain not only the trust of our investors to raise our first fund and showed them who we truly are, what we are capable of, and how we will run our firm.

Also Read: What lessons can crypto investors draw from the Luna, UST episode?

Authenticity in our relationships with our founders is equally important. We knew the kind of partnerships and roles we wanted to play in our portfolio investments, and we were always upfront with would-be founders on our approach to active involvement and open communication. This ensures a right fit between the founders we invest in and us.

Onwards

I have learned many lessons from my professional and personal journey, and I know those lessons will continue to come my way. But as I was once told, if you learn and grow from them, they become valuable lessons. If you don’t, they will remain regrettable mistakes.

In our industry, where failures are costly and challenges can rife, I am very glad that we are able to build a great team at Alpha JWC who uphold those values and work very closely like a family to make things happen for all our stakeholders and most of all our portfolio founders.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

Join our e27 Telegram groupFB community, or like the e27 Facebook page

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Exploring corporate partnerships as a pathway to scaling your startup

SAP

Garnering corporate partnerships is often a coveted goal for many startup founders. Still, it may not always be perceived as an immediate strategic priority, given the relative differences in scale of business operations, thereby giving a perception that possible intersecting priorities are thin to nil. However, in a conversation among Southeast Asian startup founders at Echelon, along with e27 and SAP, key insights about emerging use cases where corporate-startup partnerships in the region have served to be a compelling avenue to drive more significant business value were shared.

Tackling the topic of how startups can scale sustainably and enter new markets through corporate partnerships, the panel speakers were Raunak Mehta, co-founder and CEO of Igloo, Junkai Ng, co-Founder of Janio Asia, Shamir Rahim, founder and Group CEO of Versafleet, and Aaron Ang, SAP head of Southeast Asia mid-markets. The conversation was moderated by Justin Chin, head of business development at e27.

The conversation focused on what they did to prepare and secure corporate partnerships, how they navigated associated challenges and overcame them, as well as insights on how to effectively forge long-term collaborations with corporates.

Corporate-startup collaboration

Touching on the mindset needed when deciding to work with corporates, Shamir, who runs a transport management software that digitalises business execution and last-mile route optimisation, shared that it was a challenging journey at the start.

Initially starting out with SMEs as their primary client pipeline, their team eventually faced pains associated with inconsistent sales cycles, not to mention encountering partners with misalignments in innovative mindsets. From their seventh year of operations, they gathered the courage to target corporates. While they had to grapple with going through long contracts and questionnaires, they persevered. Getting their first corporate client gave them the confidence and experience in their playbook to win more corporate partners. These now include Resorts World Sentosa, Watsons, and Indofood.

Expanding on the massive potential of corporate-startup collaboration, Aaron elaborated SAP’s strategy to build value and sell to, through, and with startups, “You can no longer ignore the proliferation of tech moving the market and changing trends. Rather than solving everything, partnering is always the way to go”.

Aaron is excited about partnering with startups, citing Versafleet as a successful case study wherein they have developed APIs and intellectual property through the SAP Innovation Platform and have since reaped substantial business value through catering to more corporate clients via this avenue. Providing the leading enterprise software in the market at its core, SAP also serves as a platform for startups to be connected to other enterprise clients globally and access this as a compelling business development channel.

SAP

Also read: Optimising business solutions through customer-centricity

Overcoming challenges and building strategies

On the challenges involved in forging corporate partnerships and overcoming them, Raunak, who runs a regional insurtech company spanning Southeast Asia with a vision of insurance for all, emphasises the importance of having clarity in the fundamental aspects of every deal and being deliberate on your ability to deliver promises. This may entail saying no to fluid sets of requirements, in order to commit to things that your startup can deliver on and deliver well. 

Junkai reiterated this insight and urged other founders to consider the costs of client acquisition versus the costs of losing them. He emphasised the importance of focusing on what you do really well, staying true to the fundamentals, and treating the rest as noise. As most things are already digitalised, it is not hard to find direct and indirect competitors for your solutions in the market. Therefore it is important to focus on solving the core pain point well. They embodied this case recently and have had to cut 500 clients and instead focused on delivering compelling value to their over 60 clients while retaining 90% of revenues.

Also read: Supercharging B2B startups with SAP’s enterprise collaborations

Helping startups navigate the market

As for advice to startups on driving growth for their companies as they navigate through more VUCA (volatile, uncertain, complex, and ambiguous) environments, Shamir shared, “Think of distribution. Partnering with corporates is important for new markets.” Versafleet has adopted this themselves as they leveraged SAP’s collaborative programmes where they got to work with SAP executives across continents, learned how to integrate out of the box with SAP, and eventually accessed wider networks and strategic partnerships. Due to this, Versafleet now enjoys having a larger corporate business development pipeline within the ecosystem. 

Raunak emphasised this and shared, “find platforms that have enough captive audience, requisite network effects, and piggyback on what they offer”. It is practical to identify platforms that give you substantial access to your target customers, rather than having to work on the distribution piece first-hand. He also urged startups to focus on strong business fundamentals, looking at the business financial statements as guidance to weather through macroenvironmental changes. He encourages leaders to build 12-18 months of runway, and look beyond P&L to focus on ensuring that margins are liquid, and power through by having a good spread on working capital.

Junkai reiterated the advice to focus on what is controllable versus what is not. Ultimately, the economic climate is a business cycle, and the focus is to survive this slump. Therefore it is important to get rid of the noise, focus on the business, build value for customers and meet payroll.

He shared, “the market doesn’t care if it’s startups or corporates offering, but the value you bring. There are two main principles of focus: cost and speed of distribution. Once put in place, the rest will follow.” They have the same perspective when it comes to their clients as well as to their suppliers and partners. Ultimately, it’s about providing value at scale, speed and efficiency.

SAP

Harnessing the power of SAP

Aaron encouraged startups to never stop innovating and to always share solutions that can help startup founders to manage various situations, including the good, bad, and ugly. SAP has supported startups in their growth in various ways, by either being a technical partner or a consumer of their tech solutions.

Rather than being stage-specific, SAP focuses on the value that startups bring, and how they disrupt markets and differentiate themselves through their products and innovations. “Startups can develop their IP, integrate with SAP solutions, making their IP sellable”, Aaron shared. With this, startups that become tech partners of SAP can tap 440,000 customers across 180 countries.

SAP looks forward to bolstering its provision of value through strategic partnerships with leading startups in the Southeast Asian region. Apart from Versafleet, they have collaborated with other innovative businesses in SEA such as Opsis which offers emotion and facial-recognition based AI business applications, F&B businesses like Jumbo Group, and e-commerce businesses like Love Bonito.

For more information, visit https://www.sap.com/sea/index.html and https://sap.io/startup-programs/.

SAP

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This article is produced by the e27 team, sponsored by SAP

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